The Financial Planning Association hosted Financial Literacy Week in partnership with the Christian Community Credit Union from April 4-7 to teach Biolans how to manage their money wisely. Shane Enete, associate professor of finance at the Crowell School of Business, explained financial competence empowers students to steward their resources well in a fiscally illiterate society.
“Our society is currently experiencing an epidemic of financial illiteracy and financial trauma,” Enete said. “Worldwide, only one-third of adults understand basic financial concepts. The mission of Biola FPA is to provide financial education and empowerment to the whole Biola campus and the surrounding community.”
FORMING GOOD HABITS
Sophomore business administration major Ava Purcell, who serves as the financial controller for the Student Missionary Union, encouraged students to cultivate financial management to guide them as their resources expand. Purcell explained that viewing money as a tool that ultimately belongs to God revolutionizes one’s outlook on finances.
“There is a misconception among Christians that money is evil, when it’s the love of money that is evil,” Purcell said. “Money can be a tool to further God’s kingdom if used well. Sometimes Christians do not want to surrender their money to Jesus, but since he calls us to live generously, we can trust he can provide for our needs.”
Junior business administration major Aidan Green noted that since all students interact with money in some way, it is important to have the knowledge to make informed decisions about how to spend and invest.
“Have good practices with the money you have that will translate to the future,” Green said. “Be wise with decisions, save the money you have and know how to spend wisely on good investments that will carry on to the future.”
DEBT AND SAVINGS
In a session focused on student banking, Enete highlighted common pitfalls to avoid. He cautioned students against paying for overdraft protection, a service banks offer that lets a transaction go through if the spender does not have enough money in their account to cover it. Enete said banks charge high fees for this protection and explained it is better for a credit card to be denied so the spender knows they do not have enough funds to cover the purchase.
Enete encouraged students to establish an emergency fund of $300-$500 with the long-term goal of saving up three to six months worth of their salary. Enete explained that when a person goes into debt, they are beholden to another party—a situation Enete described as a type of slavery. Enete pointed to an emergency fund as a way to honor God by stewarding one’s given resources well.
“In addition to learning basic financial literacy, Biolans should learn how to fully integrate their money lives with their Jesus lives,” Enete said. “The goal of this integration would be to allow Biolans to worship Jesus as they express themselves as wise and generous stewards of God’s money.”
CREDIT CARDS: FEAR AND SKILL
In a session about credit card ownership, Green cautioned students to avoid the trap of minimum payments. Green explained minimum payments allow the credit card owner to pay a portion of their bill to avoid a bad credit report, with the downside of high interest rates.
“Credit cards are not for spending money you don’t have,” Green said. “Don’t use a credit card to loan yourself money, and only spend an amount that your bank account can cover. If you struggle to make payments on time, get rid of your card.”
Green and Purcell encouraged Biolans to join the Financial Planning Association in the business building Thursdays at 7 p.m. for meetings that focus on faith and finances. The specific meeting room for each week can be found on the group’s Instagram account.
